6 Times When You can opt For the Loan Against Insurance Policy
In India, the number of people having a life insurance policy is higher than any other investment options. A life insurance policy comes with a lower amount of premium which makes it easy to apply and manage by almost everyone.
Not only a life insurance policy offers a lump sum amount to your nominee in your demise, but you can also use it now to fund your multiple needs. Yes, if you have a life insurance policy, you can pledge it with a lender and get a large amount of money.
What is the loan against life insurance policy?
The concept of the loan against policy is clear – it is offered when you pledge your invested insurance policy with a lender. Based on the worth of your collateral, you can easily get an amount and use it to cover many needs.
A person needs to pledge his/her insurance policy for availing the loan. Hence, the loan against insurance policy interest rate is affordable to manage.
When and for what purposes you can avail the loan against policy?
The fund made available under the loan against policy is not restricted in usage. Hence, you have the authority to use the loan money as per your needs.
As per your loan eligibility, you can borrow a large amount up to Rs.10 crore at lower interest rates.
Here are some ways you can use the money acquired under the loan against life insurance policy.
To consolidate your debts
One of the prime reasons for people to avail a short-term loan such as the loan against life insurance policy is for debt consolidation. You may have some ongoing loan EMIs and credit card outstanding that may be eating monthly expenses’ portion. Hence, it is always a better option to avail a loan against policy and pays off all others. This way, you will pay just one EMI and manage your monthly outlay minus issues.
To have a dream wedding
Nobody wants to have his/her marriage or the wedding of the children to be a dull affair. Hence, no matter how well you save for the d-day, you may still be short. There are various things which comes in our mind when are planning to host a lavish and grand wedding for our son/daughter. From the venue details to catering requirements, accomodation of guests to decorations around.Therefore, you can apply for the loan on insurance policy and manage remaining expenses.
To face a medical emergency
Medical emergencies are inevitable and so are its expenses. The cost of the medical services in India has gone up by leaps and bounds in recent years. The trend is expected to soar in coming years as well. Hence, you may opt for a health insurance plan for a year at an affordable premium. You can also avail a loan against policy to cover the hospitalization and medicine expenses.
For business expansion
If you already have a business and want to expand it, you can use the loan against policy funds to do that. A business expansion needs funds for the land purchase, buying new devices and equipment. It is also needed for managing cash flow, and other crucial expects. In the same context, the loan against insurance policy can offer you enough money and sufficient to meet all your business needs and requirements which you are looking for.
For family trip or long term vacation
If you are planning to go on a long term holiday to a different country with your family, then you will required immediate fundings to fulfil your dreams. A Family trip needs funds for travel expenses, hotels, shopping and various other personal requirements which we want to fulfil during a trip. At that case, our investments like policies can be very handful for us and provide us an instant loan facility by availing a loan against insurance policy.
For all other personal needs
You also have the freedom to use your loan amount as per your own needs and preferences. You should ensure not to use the loan amount for any illegal and gambling purposes. These are not some of the easiest and day-to-day life ways you can use your loan against policy are now discussed. If you are ready to cover any of the needs without liquidating your assets, you can apply for the loan against policy online today.
Since you will be taking a loan against insurance policy it would be better to check your eligiblity using the criteria mentioned on the lender’s website. Also use the loan eligibility calculator which would help to get your loan easy and hassle free.